• IND IFSCA commenced review of Market infrastructure institutions regulations, 2021.
• Follows IND IFSCA January 2021 proposed infrastructure institutions rules.

Background

• The IFSCA (market infrastructure institutions) regulations, 2021 (MII regs), provide the requirements for grant of recognition to an MII in the IFSC, net worth requirement, shareholding requirement, fit and proper requirement, and governance norms.
• As well as record keeping requirements and general obligations of MIIs in the IFSC.
• There have been recent developments re liquidity switch of NIFTY derivatives contracts from Singapore to IFSC, and listing of Indian firms on IFSC exchanges.
• The review aims to enhance the liquidity and widening the investor base on MIIs.

Effectiveness

• Stakeholders can submit comments until 17 June 2024.